Wednesday, September 19, 2012

Pros and Cons of legal title options in retirement villages.

In many ways, buying a retirement village unit is even more complicated than buying any other type of residential property.  There are different forms of legal title and occupancy rights available, there is the ongoing cost of services and maintenance of facilities in the village, and then what fees, charges or capital gain sharing may apply when the unit is sold again later on. Different transaction costs may or may not apply to a purchase, such as stamp duty, lease registration fees and a village operator’s legal costs.

While these legal and financial complexities should not detract from the benefits of village living, it is very important to obtain legal advice before you buy a retirement village unit. You need to be fully informed of all the costs and issues which may arise and ensure there are no surprises or unanticipated problems later on.

Seniors Housing Online has been fortunate to talk to Richard McCullagh BA LLB, a very experienced NSW solicitor who has specialized in retirement village law for the past 25 years, previously working for village operators and who now works for village residents (or prospective residents).  He has seen huge consolidation in the industry in the last 5 years as well as keeping up with ever-changing government regulation.

We asked Richard to answer some common questions about buying a retirement village unit, including the pros and cons of the different types of legal title and occupancy arrangements.

Read the article on the Seniors Housing Online News page.

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